. >> reporter: he thinks that a balanced and well thought out action plan is necessary to get out of deflation. >> we have to get out, but in order to get out you have to raise taxes. also, avoiding the weak economy. so you have to have the right policy mix to gradually increase taxes and at the same time, use part of the revenue to stimulate the economy. but the net effect has to be declining budget deficit. so you need this policy mix, increasing taxes and then use part of tax to stimulate the economy, but cut the budget deficit. that is a very delicate balance. >> reporter: are there other growth strategies that the administration can do? >> they can increase the growth of the japanese economy, the growth rate of the japanese economy, we have to increase the population, working age population. now working age population is declining by about 1% per year. so even if we can achieve more productivity growth higher than the united states. achievable trend growth rate is only 0.5%. you have to increase the growth rate to stimulate the economy, we have to get more migration. >>> thousan